The economics ministry is warning Taiwanese businesses that China’s new regulations on foreign investment pose a risk to potential investors. China’s Measures on National Security Review of Foreign Investment will come into effect on Monday.
The new regulations require investors to make a formal declaration before investing in a number of sectors. These include military technology and finance, as well as several industries the Chinese government deems to be ‘important’ or linked to national security.
However, Taiwan’s economics ministry has warned that the Chinese regulations leave the definition of many terms unclear. It says that there is a high degree of uncertainty about how the measures will be implemented. The ministry warns that if investors violate the rules, they risk losing their investment and may face punishment by China’s credit agency.
Meanwhile, the ministry says it will continue to scrutinize the regulations, as well as other impending measures that might affect Taiwanese businesses. It says it will provide legal support to investors affected by the law, while continuing to provide support to businesses looking to withdraw investment from China.